Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 20 of P.L.1984,
c.73 (C.27:1B-20) is amended to read as follows:

20. There is hereby
established in the General Fund an account entitled "Transportation Trust
Fund Account." During the fiscal year beginning July 1, 1984 and during each succeeding fiscal year in which the authority has bonds, notes or other
obligations outstanding, the treasurer shall credit to this account:

a. An amount equivalent to
the revenue derived from [$0.105
per gallon] from that
portion of the tax imposed on the sale of motor fuels pursuant to chapter
39 of Title 54 of the Revised Statutes equal to: $0.105 per gallon in the
State fiscal years beginning on July 1, 2006 and thereafter through the State
fiscal year beginning on July 1, 2009, as provided in Article VIII, Section
II, paragraph 4 of the State Constitution; $0.125 per gallon in the State
fiscal year beginning on July 1, 2010; $0.145 per gallon in the State fiscal year
beginning on July 1, 2011; $0.165 per gallon in the State fiscal year beginning
on July 1, 2012; $0.185 per gallon in the State fiscal year beginning on July
1, 2013; $0.205 per gallon in the State fiscal year beginning on July 1, 2014;
and $0.225 per gallon in the State fiscal year beginning on July 1, 2015, and
each State fiscal year thereafter, provided, however, such amount during
any fiscal year shall not be less than $483,000,000 in each of the State
fiscal years beginning on July 1, 2006 and thereafter through the State fiscal
year beginning on July 1, 2009; $575 million in the State fiscal year beginning
on July 1, 2010; $667 million in the State fiscal year beginning on July 1,
2011; $759 million in the State fiscal year beginning on July 1, 2012; $851
million in the State fiscal year beginning on July 1, 2013; $943 million in the
State fiscal year beginning on July 1, 2014; and $1,035 million in the State
fiscal year beginning on July 1, 2015 and each State fiscal year thereafter;

b. (Deleted
by amendment, P.L.2000, c.73).

c. An amount equivalent to
moneys received by the State in accordance with contracts entered into with
toll road authorities or other State agencies, provided that effective with the
fiscal year beginning July 1, 1988 the amount so credited shall not be less
than [$24,500,000.00]$24,500,000 in
any fiscal year.

The treasurer shall also
credit to this account, in accordance with a contract between the treasurer and
the authority, an amount equivalent to the sum of the revenues due from the
increase of fees for motor vehicle registrations collected pursuant to the
amendment to R.S.39:3-20 made by [this
act]section
32 of P.L.1984, c.73 and from the increase in the tax on diesel fuels
imposed pursuant to the amendment to R.S.54:39-27 made by [this act]section 35 of
P.L.1984, c.73 and by section 7 of P.L.1987, c.460, provided that
the total amount credited during the fiscal year beginning July 1, 1984 shall
not be less than [$20,000,000.00]$20,000,000 and
that the total amount credited during the fiscal year beginning July 1, 1985
and during every fiscal year thereafter shall not be less than [$30,000,000.00]$30,000,000.

In addition to the amounts
credited to the account by this section, commencing with the fiscal year beginning
July 1, 1995 and every fiscal year thereafter, there shall be appropriated from
the General Fund such additional amounts as are necessary to carry out the
provisions of this act and beginning July 1, 2000 the fees collected pursuant
to subsection a. of section 68 of P.L.1990, c.8 (C.17:33B-63) shall be credited
to the account for the purposes of this act, provided, however, the amount
credited from such fees during any fiscal year shall not be less than
$60,000,000.

d. In addition to the
amount credited in subsection a. of this section, beginning January 1 [following approval by the
voters], 2001,
an amount equivalent to the revenue derived from the tax imposed on the sale of
petroleum products pursuant to P.L.1990, c.42 (C.54:15B-1 et seq.), provided,
however, such amount shall not be less than $100,000,000 in the period January
1 through June 30 [following
approval by the voters], 2001 and shall not be less than $200,000,000 in any fiscal year
thereafter and for the fiscal year commencing July 1, 2001 and for each fiscal
year thereafter an amount equivalent to the revenue derived from the tax
imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1
et seq.) on the sale of new motor vehicles, provided, however, that such amount
shall not be less than $200,000,000 for the fiscal year commencing July 1, 2003
and for each fiscal year thereafter, as provided in Article VIII, Section II,
paragraph 4 of the State Constitution.

No later than the fifth
business day of the month following the month in which a credit has been made,
the treasurer shall pay to the authority, for its purposes as provided herein,
the amounts then credited to the Transportation Trust Fund Account, provided
that the payments to the authority shall be subject to and dependent upon
appropriations being made from time to time by the Legislature of the amounts
thereof for the purposes of the act.

(cf: P.L.2006, c.3, s.3)

2. R.S.54:39-27 is amended
to read as follows:

54:39-27. a. Every
distributor, importer and gasoline jobber shall, on or before the 20th day of
each month, render a report to the Director of the Division of Taxation, in a
manner prescribed by the director, stating the number of gallons of fuel sold
or used in this State by him during the preceding calendar month. Upon
application to the director, the period within which a report must be made may
be extended by up to an additional 10 days, if it shall be deemed advisable by
the director. A tax [of
$0.105 per gallon]
on each gallon so reported[,] shall be paid by each
distributor, importer, and gasoline jobber, such payment to accompany
the filing of the report. The rate of the tax shall be: $0.105 per gallon
in the State fiscal years beginning on July 1, 1988 and in each State fiscal
year thereafter through the State fiscal year beginning on July 1, 2009; $0.125
per gallon in the State fiscal year beginning on July 1, 2010; $0.145 per
gallon in the State fiscal year beginning on July 1, 2011; $0.165 per gallon in
the State fiscal year beginning on July 1, 2012; $0.185 per gallon in the State
fiscal year beginning on July 1, 2013; $0.205 per gallon in the State fiscal
year beginning on July 1, 2014; and $0.225 per gallon in the State fiscal year
beginning on July 1, 2015 and in each State fiscal year thereafter.

Such report shall contain such
further information as the director may require. Under such regulations as the
director may prescribe, sales of fuel may be made by one licensed distributor,
importer or gasoline jobber to another licensed distributor or gasoline jobber
free of such tax. If any distributor, importer or gasoline jobber shall fail,
neglect or refuse to file the report within the time prescribed by this
section, the director shall note such failure, neglect or refusal upon his
records, and shall estimate the sales, distribution and use of said
distributor, importer or gasoline jobber, assessing the tax thereon, adding to
said tax a penalty of 20% thereof for failure, neglect or refusal to report,
and such estimate shall be prima facie evidence of the true amount of tax due
to the director from such distributor, importer or gasoline jobber; provided
that if a good and sufficient cause or reason is shown for such delinquency,
the director may remit or waive the payment of the whole or any part of the
penalty, as provided in the State Tax Uniform Procedure Law, subtitle 9 of
Title 54 of the Revised Statutes. Reports required by this section, exclusive
of schedules, itemized statements and other supporting evidence annexed
thereto, shall at all reasonable times be open to the public, anything
contained in R.S.54:50-8 to the contrary notwithstanding.

b. (Deleted by amendment,
P.L.1992, c.23).

(cf: P.L.1992, c.23, s.18)

3. Section 54 of P.L.1992,
c.23 (C.54:39-64.3) is amended to read as follows:

54. An excise tax [at the rate of $0.135 per
gallon or fractional part thereof]
is imposed upon any seller of special fuels, and any user of special fuels, who
delivers or places fuels into the fuel supply tank or other fueling receptacle
or device of a motor vehicle for use to propel the vehicle over the public
highways, or who uses special fuels within the meaning assigned by this
chapter, or who makes sales of special fuels to unlicensed buyers. The rate
of the tax shall be: $0.135 per gallon or fractional part thereof in the State
fiscal years beginning on July 1, 1988 and in each State fiscal year through
the State fiscal year beginning on July 1, 2009; $0.155 per gallon or
fractional part thereof in the State fiscal year beginning on July 1, 2010;
$0.175 per gallon or fractional part thereof in the State fiscal year beginning
on July 1, 2011; $0.195 per gallon or fractional part thereof in the State
fiscal year beginning on July 1, 2012; $0.215 per gallon or fractional part
thereof in the State fiscal year beginning on July 1, 2013; $0.235 per gallon
or fractional part thereof in the State fiscal year beginning on July 1, 2014;
and $0.255 per gallon or fractional part thereof in the State fiscal year
beginning on July 1, 2015 and in each State fiscal year thereafter.

If a seller of special fuel
fails to collect a tax the seller is liable for the tax due on the transaction
unless the seller shall have taken from the buyer a certification in such form
as shall be determined by the director. The tax herein imposed shall not apply
to fuels not within the taxing power of this State under the Constitution of
the United States. The tax shall be paid to the State but once in respect to
any fuels used within the State. No tax is imposed upon (a.) any fuel that is
used by or sold and delivered to the United States government, when such sales
and deliveries are supported by documentary evidence satisfactory to the
division, or (b.) upon any fuel not in excess of 150 gallons brought into this
State in the fuel supply tanks or other fueling receptacles or devices of a
motor vehicle, or (c.) upon any fuel used by, or sold or delivered to, the
State of New Jersey or its political subdivisions when such sales and
deliveries are supported by documentary evidence satisfactory to the division,
or (d.) to fuel sold to diplomatic missions and diplomatic personnel under a
program administered by the director and predicated upon the United States
Department of State, Office of Foreign Missions' or successor office's national
tax exemption program. The tax shall be paid to the seller of special fuels as
a trustee for and on account of the State. The user or seller of special fuels
shall maintain a separate trustee account to be credited daily with taxes due
on amounts of fuels used on that day. The account shall be maintained for and
on account of the State of New Jersey.

(cf: P.L.1992, c.23, s.54)

4. This act shall take
effect immediately.

STATEMENT

This bill would provide
enhanced funding of the New Jersey Transportation Trust Fund (TTF) through an
increase in the rate of the tax on motor fuels and a corresponding increase in
the amount required by law to be annually credited to the TTF. The amount of
the increase would be two cents per gallon in the each of the State fiscal
years 2011 through 2016.

The bill increases the State’s
required annual contribution to the TTF from the current $483 million to $575
million in State FY2011, $667 million in State FY2012, $759 in State FY2013,
$851 in State FY2014, $943 million in State FY2015, and $1,035 million in State
FY2016.